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NEWSLETTERS
NEWSLETTERS
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561-683-8383
January 2006 |
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In this issue
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Class Audits & Improved Management Cut Care Provider's Mod 44% |
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Why Training Line Managers
Is Important |
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Four Keys for Training Supervisors |
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Class Audits & Improved Management Cut Care Provider's Mod 44%
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Insured:
The business is a non-profit outpatient, long-term are provider with a $20 million payroll for 512 employees spread over nine locations in the metro-Denver area. The company assists elderly clients so that they are able to remain at home by either picking them up from their homes each day and bringing them to day-centers, or providing in-home nursing care when necessary. They also coordinate and transport clients to medical appointments.
Situation:
The employer had a mod of 1.71. The staff was classified in eight different class codes, losses were three times higher than expected and the premium was $321,734.
Assessment:
Certified WorkComp Advisors (CWCAs) reviewed the client's WorkComp program. They found the employees were incorrectly classed by the previous agent - who was not a certified advisor - and their auditor had "found no exposure" for the office class code when in fact close to $4 million of the insured's payroll was strictly office personnel.
Internally, the company's deductible was too low and there were no loss prevention, safety or back to work programs in place.
Solution:
Several solutions were needed and implemented. First, the CWCA proposed a $1,000 deductible, to which the client agreed. Then the NCCI was called in to perform a classification audit, first for the current policy year
and then for the two previous years. Next, safety specialists were brought in to assess the business and the CWCA implemented the program, "HR That Works." Safety programs including Shoes For Crews - a non-slip shoe program that reimburses the policyholder for the first $5,000 of a claim if the worker slips while wearing the shoes - were established for all their drivers. A dedicated WorkComp point person was identified and that person now holds quarterly claims meetings with the adjuster, the designated provider, and the CWCA.
Result:
The deductible increase immediately eliminated 75% of their losses from the reportable losses for the mod calculation. The class audit conducted by NCCI for the current year reduced the number of classes from eight to
three and reduced the mod from 1.71 to 1.24. When the previous two years were audited, that was further reduced to 1.11 and the client received back premiums. In January 2005, the insured renewed their policy with a 0.96 mod. Despite the fact that the payroll had increased to over $20 million from just $12 million the year before, the new premium was $337,114. Had they renewed with that large of an increase in payroll and a mod of 1.71, the premium would have been $587,846. That represents a savings of $250,732!
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Why Training Line Managers
Is Important
Dr. Jennifer Christian |
(The following articles are a summary of a May 2005 column written by Dr. Jennifer Christian, President/Chief Medical Officer, Webility Corporation. Please see related article on the Teleclass she will be conducting on January 25, 2006.)
When an employee goes out on workers' comp, the supervisor thinks most about getting a replacement to get the work done. The employee's
unexpected absence disrupts the production schedule, puts pressure on
fellow employees and if the company has an incentive program, the supervisor
and co-workers may lose their bonus. This often leads to veiled or overt
hostility or abandonment and neglect.
Supervisors don't understand that hiring and training a new person
is oftentimes more costly and less productive than getting the injured
employee back to work. Although supervisors are critical to the success
of return-to-work (RTW) programs, few are properly trained on how to do
it.
The process of training is not as overwhelming as it seems. The extent
and timing of training should be adjusted to the likelihood of its being
needed. Training is forgotten when it is not used. For departments with
a history of frequent, problematic injuries, an initial training of all
supervisors may be required with refreshers for individuals as needed.
For departments with infrequent injuries providing initial training on
a just-in-time basis is probably better. Your lost time claim in-take
process can trigger a requirement for formal training of the supervisor.
A common solution today is for companies to select and train one person
who can then be a resource for others. In companies with medical departments,
this might be a nurse or case manager; in others it might be a HR person
or administrative staff. They work with the physicians to get the employee
back to work in the least amount of time and in the best shape. When the
employee returns to work, they work with the employee and supervisor in
making temporary or permanent adjustments to the job as necessary. In
small companies, this responsibility falls to the company president, office
support staff or even the supervisor.
Even in companies with in-house medical departments or contracted occupational
health clinics, training line supervisors is critical. It is unlikely
that the corporate staff will have the ability or time to monitor what
is happening every day. The supervisors are the only ones who can monitor
what is happening "on the line" every day. They create the
microclimate in which people work - and many supervisors have never
had any training in how to manage people, much less people who are feeling
hurt and vulnerable.
The content of the training should be highly focused around active management
of the situation and maintaining contact with the injured employee. The
goal is to make supervisors feel comfortable managing a situation outside
of their expertise, while understanding what you expect them to do.
In many cases, pre-training for first line supervisors can be provided
in about 15 minutes in a group session and then reinforced during production
meetings on a weekly or monthly basis. Accidents and injury status should
be an integral part of discussions.
This brief training will allow you to expect and require your supervisors
to take certain actions at the start of any incident. These should include
the immediate notification of others if there is a problem employee (i.e.,
late reporting), a problem supervisor (who fails to follow procedures)
or a problem doctor (does not address the return to work issue when presented
with a reasonable request).
Beyond this brief preparedness training, supervisors need to be aware
of the importance of interpersonal issues. Their attitude and communication
will greatly affect the injured workers desire and effort to return
to work as soon as possible. They need to be provided with specific instructions
on how and what to communicate to employees and to treat everyone in a
professional manner, regardless of their opinion of the employee.
Most importantly, for supervisors to look beyond their immediate need
to get the work produced and grasp the bigger picture, upper management
must make RTW part of the company culture and provide the necessary support
when an incident becomes more problematic than the supervisor can handle.
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Four Keys for Training Supervisors
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Training and accountability for workcomp injuries cuts lost days, reduces injuries, improves injury outcome and decreases workers' compensation costs. Owners, executives and top managers must consistently and repetitively
communicate the following four key points so that supervisors understand the larger context of RTW and productivity improvement:
- Why it is in the company's interest for injured/ill employees to work during their recovery.
- Why it is important for injured/ill employees to be treated firmly, fairly and kindly in their workgroups.
- That supervisors will be held accountable for managing these situations effectively.
- That supervisors are being trained in order to improve their comfort/skills at managing the situation created by injured/ill/ recovering employees.
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